The Difference Between Actual Price Per Unit of Input and the Standard

question 141

Multiple Choice

The difference between actual price per unit of input and the standard price per unit of input results in a:

• A) Standard variance.
• B) Controllable variance.
• C) Volume variance.
• D) Quantity variance.
• E) Price variance.

---

Definitions:

Journal Entry

A record in accounting that notes every transaction a business makes, providing a chronological log necessary for the financial statements.

Promissory Note

A written, legal agreement where one party promises to pay another a specific sum of money on a certain date or upon demand.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Paper Company

A business entity created, often in a tax haven, for the purpose of managing investment or conducting transactions without engaging in operational business activities.